Should We Really Cap Executive Salaries at Bailed-Out Companies?
By the way. One other item regarding compensation. If Goldman for example has an employment contract that explicitely states for example John Stein will recieve .5% commision on the market value of a 10 billion dollar merger, by employment contract law, they are bound to pay it. If other contracts have different terms, they are bound. with anarchy, the King can break written agreements at will. Citi banc had contracts that included penalties for the purchase of a plane. Chicago way says you can bully your way out of anything you want.
All these expensive sales and marketing conferences have contracts. conventions are booked several years in advance you pay even if you do not show up. Why would some ignorant bank loan money to build Hotels and conference centers if advance booking for conventions ahd to carry the approval based on the moods or whims of the emperor?
this economic model has been tested in Venezuela.
